Winds of change are underway in the insurance industry.

What we’re seeing in insurance is different than what we have seen ever before. We are experiencing major changes in our weather here in Michigan. The severity and frequency of storms bringing flooding, wind and hail damage has been unprecedented.

Of course, we are not alone here in Michigan, most of us have witnessed the severe weather occurring across the entire country, especially in the last year. Unfortunately, Michigan is now experiencing the same. We are barely into 2024 and Plymouth has already experienced a dangerous thunderstorm that included high winds and hail.

As this type of weather occurs more often, insurance companies are experiencing increased claims volume. The higher level of claims in combination with inflation and workforce shortages means those claims are more expensive than ever.

The carriers are facing choices on how to handle these costs. Some of the largest insurance companies have elected to pull coverage entirely out of some states, especially those in costal areas. Others, like those in Michigan, are choosing to make a combination of changes.

Increasing rates have made homeowners’ insurance unaffordable in many states. So, Michigan insurance carriers are making more conservative premium increases while also increasing deductibles. We are seeing deductibles rise from $1,000 to $2,500, along with the inclusion of wind and hail deductibles, something that most Michigan homeowners are unfamiliar with. This more conservative premium increase keeps the costs more manageable while also shifting some risk back to the homeowner. The hope is to keep insurance accessible to everyone.

We are seeing these changes rolled out with many carriers over the last several months. Most carriers are implementing the changes at policy renewal. At Finlan Insurance, we are working hard to have this conversation with each one of our customers prior to their renewal, explaining wind and hail deductibles and what these changes will look like for each insured.

Our agency has made this conversation a priority. Our hope is to eliminate surprises and help educate our insureds.

These insurance issues are complex. Fortunately, insurance agents are licensed advisors who are uniquely educated by the insurance carriers when changes occur. We have an intimate knowledge of the industry and how to manage the changing market conditions. We’re here to walk folks through their coverage and help them understand everything that is happening.

We also want to have a conversation around what customers can be doing to keep themselves insurable and mitigate costs, where possible. We are spending a lot of time talking about roof age and condition, tree overhang and what people should be doing to keep their home well maintained.

Some carriers offer savings for new roofs, installing water sensors, automatic water shutoff, and fire/security alarms. These improvements can assist in avoiding large claims and/or notify homeowners when a potential problem exists before it gets costly and time consuming.

Claims and losses are devastating to people. We want to help our customers avoid claims when feasible. But if a claim does occur, we want it to go as smoothly as possible.

If you have questions about your coverage, feel free to give C. L. Finlan Insurance a call (734) 453-6000, or stop by their office in Plymouth Township. www.finlan.com.